IT solutions provider CDW (NASDAQGS:CDW) will be reporting results this Wednesday before the bell. Here’s what to look for.
CDW beat analysts’ revenue expectations last quarter, reporting revenues of $5.68 billion, up 9.2% year on year. It was a strong quarter for the company, with EPS in line with analysts’ estimates.
Is CDW a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting CDW’s revenue to grow 4.6% year on year, slowing from the 10.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. CDW has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at CDW’s peers in the it distribution & solutions segment, some have already reported their Q2 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 31%, beating analysts’ expectations by 16.6%, and Connection reported revenues up 12.4%, topping estimates by 11.3%. Connection’s stock price was unchanged following the results.
Read our full analysis of TD SYNNEX’s results here and Connection’s results here.
There has been positive sentiment among investors in the it distribution & solutions segment, with share prices up 5.3% on average over the last month. CDW is up 10.3% during the same time and is heading into earnings with an average analyst price target of $152.56 (compared to the current share price of $147.96).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
